>> It's all the rage on Wall Street, the upcoming chance to buy a piece of Snap Inc, the parent of SnapChat, in the biggest debut for a US tech company since Facebook. Sources tell Reuters, the demand for the IPO, which could come as early as next week, is so strong, it's already over subscribed.
But in the midst of all the euphoria, Reuter's Economics and Markets Editor, Dan Burns has a warning for potential investors.>> We looked at the 25 largest IPO's of all time globally, and the 25 largest from the United States. And the data shows that in their first year, they don't do so well, among the names that we know best, Ali Baba, which raised $25 billion in 2014, to rank as not just the largest tech IP of all time, but the largest IP of all time.
About a year later, it was 30% lower, and it spent most of the first 2 years underwater.>> Not even the so-called unicorns, a rare and hotly sought after breed on Wall Street are exempt.>> The unicorns, these companies that achieve a $1 billion valuation before they go public, and that has a lot of notable names on the list.
But, the last 5 to debut that make this list of the 25 largest, from the US at least, all really nose dived in the 1st year, and that includes the likes of Twitter, Groupon, Zinga,and Facebook. And the 5th member of that elite group, FitBit, has tumbled more than 75% since its 2015 debut.
Only Facebook has broken the curse of those early days, and is now trading way above its first day price, but only after proving it could grab the most eyeballs and ad dollars in all the social media world. Which by the way, is the same thing Snap has to do, to convince Wall Street that it's more than just a youthful fad.